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The Liquidity Component of the CAMELS Rating Refers to

Question 29

Multiple Choice

The liquidity component of the CAMELS rating refers to


A) regulators' concern about how a bank's earnings would change if economic conditions change.
B) how well the bank's management would detect its own financial problems.
C) a bank's sensitivity to financial market conditions.
D) monitoring the type of loans that are given, the bank's process for deciding whether to provide loans, and the credit rating of debt securities that it purchases.
E) excessive borrowing by banks from outside sources, such as the discount window.

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